[Click eStock] Hyundai Motor, Volume Recovery and UAM Optimism

[Asia Economy Reporter Junho Hwang] DB Financial Investment expressed optimism on the 4th regarding Hyundai Motor's transition into an urban air mobility (UAM) company and maintained a target stock price of 300,000 KRW.

Since last year, Hyundai Motor has established a corporation related to the UAM business and begun developing eVTOL aircraft. Hyundai Motor's eVTOL concept model, the S-A1, can accommodate up to five people including the pilot, with a maximum speed of 290 km/h and a maximum range of 100 km. The flight altitude ranges from 300 to 600 meters, meeting the UAM corridor standards of the EU, the United States, and Korea.

Hyundai Motor plans to mass-produce the eVTOL aircraft in 2028, which is somewhat later compared to competitors who will mass-produce between 2024 and 2026. However, Hyundai plans to differentiate by supporting remote and autonomous driving from the launch. Hyundai is preparing to transform not just into a simple eVTOL manufacturer but into a mobility company that comprehensively provides UAM services. To this end, it has established an independent UAM corporation called Supernal in the United States.

DB Financial Investment also expects Hyundai Motor's automobile business to recover volume this year. The European automobile market is projected to reach about 16 million units this year, an increase of approximately 22% compared to 2020. In the United States, sales of various new EV and SUV models such as Tucson, Ioniq 5, 6, and GV60 are expected to accelerate due to demand for replacing aging vehicles. Although market share may slightly decline due to competitors' production normalization, Hyundai Motor's global sales volume is expected to increase by more than 10% compared to last year.

Kim Pyeongmo, a researcher at DB Financial Investment, stated, "This year, Hyundai Motor is expected to continue sales growth through increased demand in key regions and new model launches, leading to market share expansion." He added, "Based on DB estimates, the company's 2022 forward PER is 6.5 times, which we believe is undervalued compared to global competitors, so we maintain a buy recommendation."

This content was produced with the assistance of AI translation services.